Advanced Drainage Systems (NYSE:WMS) has caught the attention of research analysts for its consistent revenue growth and potential to deliver impressive earnings, with Oppenheimer forecasting earnings of $5.67 per share for 2023, and the current consensus estimate for full-year earnings at $5.75 per share. The company has the potential to maintain steady earnings growth and offers investors a lucrative long-term investment opportunity, with a “Moderate Buy” average rating from Bloomberg.com.
Advanced Drainage Systems (NYSE:WMS), a construction company with a primary focus on drainage solutions, has recently caught the attention of research analysts for its consistent revenue growth and potential to deliver impressive earnings. Oppenheimer’s 2023 earnings forecast for the company projects full-year earnings of $5.67 per share, maintaining an outperform rating and a $108.00 share price target. The optimism surrounding this company has sparked investor enthusiasm, with the current consensus estimate for full-year earnings at $5.75 per share, indicating room for growth even beyond current expectations.
Taking a glimpse into the future, Oppenheimer forecasts Advanced Drainage Systems’ earnings of $0.67 in Q4 2023, EPS of $1.59 in Q1 2024, EPS of $1.62 in Q2 2024, and EPS of $1.13 in Q3 2024. Moreover, the earnings for the fourth quarter of 2024 are predicted at $0.89, with an EPS of $5.23 for 2024, and an increase to $5.82 per share by 2025. These projections show that Advanced Drainage Systems has the potential to maintain steady earnings growth, offering investors a lucrative long-term investment opportunity.
Adding to the allure, the company recently announced a quarterly dividend paid on March 1st to shareholders of record on March 15th. Shareholders received a dividend of $0.12, with an annualized total dividend rate of 8.65%. Overall, Advanced Drainage Systems is on an upward trajectory and shows no signs of losing momentum anytime soon.
The recent stock market data for Advanced Drainage Systems shows the company’s shares opened at $84.48 on Friday. Their 50-day and 200-day moving averages stand at $85.12 and $93.16, respectively. With a market cap of $6.86 billion, a PE ratio of 15.22, and a beta of 1.38, the company has experienced highs and lows over the past year, ranging from a 52-week low of $75.02 to a high of $153.36.
Other brokerages have also weighed in on the company’s future. Loop Capital reduced their target price for shares from $118 to $115, maintaining a “buy” rating. Morgan Stanley lowered its target price from $110 to $105, still labeling the stock as “overweight”. Deutsche Bank Aktiengesellschaft adjusted its target price from $147 to $126, continuing to support Advanced Drainage Systems as a good investment.
Despite one analyst rating WMS stock with a hold rating, six have assigned it buy ratings. Bloomberg.com data reveals that the company has an average rating of “Moderate Buy”, with EPS predictions hovering around $3.
In other news, CAO Kevin C. Talley recently sold 22,006 shares on March 3rd at an average price of roughly $89.67 per share, totaling nearly $1,973,278.02 in proceeds. The company posted quarterly earnings data on February 2nd, reporting a return on equity of 50.65% and a net margin of 14.93%. Their Q1 EPS of $0.99 fell slightly below the consensus estimate, while their revenue of $655.20 million was down 8.4% from the previous year, coming in below the projected $713 million.
Investors considering Advanced Drainage Systems should pay attention to past performance and future projections when evaluating their investment strategy in the current market environment. With steady earnings growth, solid dividend payments, and the support of respected financial institutions, this construction company offers an exciting investment opportunity that shouldn’t be overlooked.